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TMI Blog2014 (5) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... ri S.R. Dixit, Advocate For the Respondent : Shri Alok Srivastava, A.R. JUDGEMENT Per : Mr. H.K. Thakur; This stay application and appeal are directed against the OIA No. VAD-EXCUS-001-APP-494-13-14 dated 15.11.2013 passed by Commissioner (Appeals), Vadodara. The issue involved in these proceedings is that appellant has taken cenvat credit on the Service Tax paid by the service provider but Revenue has taken the objection that payment of such bills was made at discounted value. 2. Shri S.R. Dixit (Advocate) appearing on behalf of the appellant relied upon the CBEC Circular No. 877/15/2008-CX dated 17.11.2008 and Circular No. 122/3/2010-ST dated 30.4.2011 and argued that Service Tax has not been paid to the service pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rwise. However, if the duty paid is also reduced, along with the reduction in price, the reduced excise duty would only be available as credit. It may however be confirmed that the supplier, who has paid duty, has not filed/claimed the refund on account of reduction in price. Further, Para 3 to 5 of the CBEC Circular dated 30.04.2010 is reproduced below:- 3. As per sub-rule (7) of Rule 4 of the Cenvat Credit Rules, 2004, Credit in respect of input service shall be allowed, on or after the day on which payment is made of the value of input service and the service tax paid or payable as is indicated in invoice, bill or as the case may be, challan referred to in Rule 9. A doubt raised is as to whether the receiver of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as deemed payment, there is no reason for denying such extended meaning to the word payment for availment of credit. As far as the provisions of Rule 4(7) are concerned, it only provides that the Cenvat credit shall be allowed, on or after the date on which payment is made of the value of the input service and of service tax. The form of payment is not indicated in the same and the rule does not place restriction on payment through debit in the books of accounts. Therefore, if the service charges as well as the service tax have been paid in any prescribed manner which is entitled to be called gross amount charged then credit should be allowed under said Rule 4(7). Thus, in the case of Associate Enterprises , credit of service tax can ..... X X X X Extracts X X X X X X X X Extracts X X X X
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